November 10, 2008
Return to Keynesian Economics and Bottom-Up Bailout?
What the Obama post-victory economic plan will be is not known at this moment (the campaign version is here), but could it mean a return to Keynesian economics? Or to the New Deal--or the New New Deal (The Nation recently had a commemorative issue dedicated to the 75th anniversary of the New Deal, available here). Maybe it should be a green version of the New Deal?
China's recently announced bailout/stimulus package -- see Washington Post story here, New York Times story here -- that focuses on easing credit restrictions, expanding social services and welfare, and on infrastructure might be a model of where the U.S. could go in the future (though critics might scoff at doing what China does, they have managed a level of sustained growth that far exceeds what the U.S. has achieved -- see e.g. a Dept. of Ag. Economic Research Service report available here). About the possibility of a new New Deal, Paul Krugman's op-ed, Franklin Delano Obama?, New York Times, Nov. 10, 2008, borrowing from Obama's book title, on the topic ends, "Progressives can only hope that he has the necessary audacity."
Incidentally, the video of Obama's recent press conference on the economy can be found here.
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